Question

Due to the following transactions , (a) Commenced Business with cash Rs. 4,00,000 (b) Purchased goods on credit Rs. 75,000. (c) Goods costing Rs.1,00,000 sold at a profit of 20% for cash. (d) Rent paid Rs.5,000. The total of Accounting equation will be :-



Rs. 4,90,000

Rs. 5,90,000

Rs. 4,40,000

Rs. 3,30,000

​

Answer 1

Answer:

Rs. 4,90,000

Explanation:

As we know there are two sides of accounting equation; one side is capital + liability and second side is assets. And our in accounting equation is

Capital + Liability = Assets

Creditors. Cash. Stock

400000 400000

75000. 75000

20000. (+)120000. (-) 100000

(-) 5000. (-) 5000

Total=> 4,90,000 = 4,90,000

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